Boa Safra Sementes (SOJA3) Q3 2024 earnings summary

Executive summary

• Leader in soybean seed production in Brazil with a diversified crop portfolio and strategic distribution centers, serving the entire national territory.

• Fast-growing agribusiness focused on high-quality seeds, including soybeans, corn, sorghum, wheat, forage, and beans.

• Net operating revenue in 3Q24 was R$727.4M, down 26.3% year-over-year, due to delayed sowing and adverse weather.

• Adjusted net income for LTM3Q24 declined 5.3% to R$179M, reflecting sector volatility and lower commodity prices.

• Order backlog reached R$699M, positioning the company for opportunities in 4Q24 despite invoicing delays.

Financial highlights

• Net operating revenue for 3Q24 was R$727.4M, down 26.3% from 3Q23; LTM revenue fell 10.5% year-over-year.

• Gross profit for 3Q24 was R$96.8M, a 28.6% decrease; gross margin stable at 13.3%.

• EBITDA for 3Q24 was R$78.7M, down 40.2% year-over-year; adjusted EBITDA margin dropped to 10.2%.

• Net profit for 3Q24 was R$54M, a 53.3% decrease; adjusted net profit was R$35M, down 65.4%.

• LTM net income rose 31.4% to R$295.3M, driven by Fiagro consolidation and tax adjustments in 4Q23.

Outlook and guidance

• 2025 production capacity expected to reach 280,000 big bags, a 17% increase over 2024.

• Contracted 254,000 hectares for the 2025 harvest, up 12% from 2024.

• Order book stands at R$700M, up 38% from 2024.

• Expansion of contracted area and focus on high-tech seeds expected to support growth and meet rising demand.

• Management remains confident in adapting operations and sustaining growth despite sector volatility.